Are Your Vacation Time & Sick Leave Policies Up-to-Date?

In California, the law provides that an employee is not entitled to receive paid vacation time unless the employer has agreed to provide it. While this may seem like an easy enough rule to follow, there are still a variety of disagreements that still arise between employers and their employees.

If you are an employer that provides vacation benefits to your employees, it is imperative that your policies comply with the law. For example, a California employer cannot have a policy that provides an employee must use the vacation time or it will be lost. Once your employees have earned their vacation pay, the employer is prohibited from taking it away from them. You also cannot require that the vacation time be used in the same calendar year that it is earned. However, an employer is allowed to set a maximum amount of vacation time pay that can be accrued.

If an employee has accrued vacation time and is fired, the employer must typically pay the terminated employee the accumulated vacation time pay. This sum will be paid as wages at the employee’s last applicable rate of pay.

Having a vacation time pay policy that complies with the law is one of the most important steps in avoiding litigation on the issue. Your policy should cover numerous topics such as how an employee becomes eligible, the rate that will be paid, the maximum amount of accrued time allowed, and whether the employee must obtain approval before using the vacation time. Having a knowledgeable attorney review your policy on an annual basis is a smart move.

California recently passed a new sick leave law which becomes effective in July of 2015. The law requires most public and private employers in the State to provide their employees with a minimum of three paid sick days each year. Employers are allowed to use the accrual method or provide the sick days in a lump sum. An employer is permitted to limit the accrual of paid sick days to 48 hours or six days, in addition to limiting the use of paid sick days to three annually.

The Swenson Law Firm is located in Sacramento County and we proudly serve businesses of all sizes from all over the State of California. Contact us today to learn more about how we can assist you with matters such as trademarks, defending lawsuits, business formation, contract negotiations, hiring employees, and protecting your intellectual property. With our years of complex business trial and litigation experience, we are an effective, efficient and affordable choice in representing you at the bargaining table and in the courtroom.

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